ASSESSING THE IMPACT OF MICROFINANCE ON WOMEN EMPOWERMENT; A CASE OF TAMALE METROPOLIS IN NORTHERN REGION OF GHANA

Abstract

This study explored the impact of microfinance on empowerment of women using the Tamale Metropolis as a case study. Consequently, the study assessed the types of MFls and services available to women in the Metropolis, changes in lives of female clients of MFls, levels of investments in assets by women, and participation in household and community decision making processes by female clients of MFls. The study employed a descriptive survey design and a qualitative approach targeting 155 respondents. The findings on each of the objectives of the study are indicative that women beneficiaries of the services of MFls have access to several services including the microfinance products, i.e. credits, savings and capacity building on entrepreneurial skills. Also, micro finance services facilitated improvement in the incomes of women and their households and that includes investments in assets. A regression results indicates that the predictor variable (small loans) is significant because its p-value 0.000 is lower ! than the alpha value of 0.05. This therefore indicates that small loans and incomes of beneficiaries are statistically significant. However, micro finance services did not enhance their participation in decision making at the community levels. Following from the findings, the following recommendations are made; there is the need for a review of micro finance packages that target female clients desirous of developing small businesses. MFls should consider interest rates and other charges in a way that reflect the nature of clientele served. In addition, MFls need to invest in business development services for clients to improve business management, record keeping and even cash flow management. MFls that also have social development missions should design packages that tackle social development objectives alongside the financial services. This will go a long way to contribute towards empowerment of clients at both household and community levels.